Tesla Rival Stellantis Q1 Revenue Declines 12% Amid Preparations For New Product Wave In Second Half
Portfolio Pulse from Pooja Rajkumari
Stellantis N.V. (NYSE:STLA) reported a 12% decline in Q1 revenue to $44.6 billion, missing expectations due to volume, mix, and foreign exchange challenges. Shipments fell by 10%, while BEV and LEV sales rose by 8% and 13%, respectively. The company plans to launch 25 new models in 2024, with four already introduced. A €3 billion share buyback and a 16% dividend increase were confirmed. The revenue dip was partly due to a UAW strike impacting 2023 earnings. Tesla Inc. also reported a 9% drop in Q1 revenue to $21.0 billion, missing estimates.
April 30, 2024 | 11:28 am
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NEUTRAL IMPACT
Stellantis reported a 12% decline in Q1 revenue, missing expectations, but confirmed a €3 billion share buyback and a 16% dividend increase. Plans to launch 25 new models in 2024.
The revenue decline and missed expectations could pressure STLA's stock short term. However, the confirmed share buyback and dividend increase, along with the launch of new models, could offset negative sentiment and stabilize the stock.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Tesla reported a 9% drop in Q1 revenue to $21.0 billion, missing Street consensus estimates. This comes amid broader challenges in the auto industry.
Tesla's revenue miss could contribute to negative sentiment around the stock in the short term, especially given the broader context of industry challenges highlighted by Stellantis' report.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 80